Where to from here: Curating the transition in transport infrastructure governance and funding
I had the opportunity to contribute to the discussion at the inaugural National Future Transport Summit on the future of infrastructure governance and funding. The theme of the session was “Where to from here: Curating the transition” — a timely question as Australia grapples with how to modernise and fund its transport systems.
The strain on the current model
For decades, the dominant model has been simple: governments pay, and governments decide. Most transport infrastructure is owned and managed by the public sector, with investment priorities set through political processes.
While this model has delivered much, its limitations are becoming clearer:
Politics over productivity: Project decisions are often influenced more by electoral cycles than by economic merit.
The free rider problem: Many beneficiaries of infrastructure do not contribute in proportion to the benefits they receive.
Fiscal limits: Governments are constrained by competing demands on public funds, leading to under-investment in productivity-enhancing infrastructure.
Marginal role for private capital: PPPs, privatisations and operating concessions play a role, but only in specific projects and locations, not at a systemic level.
Road User Charging: A political and practical challenge
One of the most contested issues is road user charging (RUC).
The Federal Government’s proposal for a distance-based RUC on electric vehicles is a logical response to the decline in fuel excise revenues. But expanding RUC to all vehicles will be politically fraught. Most motorists still perceive roads as “free” once registration is paid, and shifting to a pay-per-kilometre model is a difficult sell.
Looking further ahead, however, the dynamics may change. As autonomous fleet operators like Waymo, and platform operators like Uber, become more prominent, they are well placed to incorporate usage-based charges into their business models. In effect, this reframes the challenge: rather than charging millions of private motorists, governments could charge a smaller number of fleet concession holders. Will the timeframe within which fleet operators reach sufficient prominence be soon enough? Perhaps not for some, but it may be the quickest politically feasible solution to a new funding model.
Governance: Principles for transition
If funding is one side of the coin, governance is the other.
The future isn’t about creating a single new national body, but about embedding the right principles in governance arrangements:
Inclusivity: Broaden stakeholder representation beyond state road agencies and local councils to include private operators and industry.
Shared responsibility: With influence comes obligation. Private participants must share risks and investment costs in return for a seat at the table.
Public stewardship: Governments will always have a vital role in representing those who cannot represent themselves — from rural communities to vulnerable users.
This is a cultural shift: from keeping private sector operators at arm’s length, to engaging them as genuine partners in shaping the system.
Aligning with the infrastructure recommendations
The infrastructure-related recommendations endorsed at the Summit reflect these realities.
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Moving beyond fragmented projects to create integrated networks. Whether it’s automated freight corridors linking ports and logistics hubs, robotaxis integrated with buses and trains, or vertiports and drone hubs connecting to airports, the focus must be on interoperability and networks, not isolated assets.
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Recognising that the digital backbone is now as critical as the physical. Without robust platforms and strong cybersecurity, connected and automated transport cannot succeed.
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Reviewing ownership, management and funding to unlock new models of participation. This includes engaging private sector operators as partners with shared responsibilities, and exploring innovative funding models that mobilise superannuation and other long-term capital.
These recommendations provide a clear framework for curating the transition in a practical and inclusive way.
Funding: Broadening the base
Governments alone cannot carry the financial burden of transition. The funding pool must be expanded.
That means exploring innovative ways to mobilise private capital, particularly from superannuation funds that are seeking long-term, stable investments. Equity considerations also matter. Those who benefit most from infrastructure — and those with the capacity to pay — should make a fair contribution.
Crucially, the private sector is more likely to commit real capital if it is also given genuine equity and engagement in governance.
Curating the transition
Curating the transition in infrastructure governance and funding will not happen overnight, nor will it be achieved by a single reform or institution.
It will require collaboration:
Government remaining the steward and guardian of public interest.
Industry and private operators stepping forward as partners, not just contractors.
Funding models that spread responsibility more fairly and sustainably.
If we can get these settings right, we will build transport infrastructure that is not only resilient and productive, but also fair and sustainable — fit for the decades ahead.
